Fiat Chrysler Was Almost Purchased by China's Geely
Chinese automaker Zhejiang Geely Holding Group Co. approached Fiat Chrysler about a takeover of the Italian-American company last year, according to a new report.
Geely owner Li Shufu recently purchased a $9 billion stake in Daimler, making him the largest single shareholder of the German auto giant’s stock. Before investing in Daimler, however, Shufu approached FCA about buying the company. He didn’t make a formal offer as the two parties had differing opinions on the future value of FCA, however.
SEE ALSO: Geely Owner Buys Huge $9 Billion Stake in Daimler
Shufu is largely driven by the same ideas that FCA CEO Sergio Marchionne is. Marchionne has said in the past that automakers must consolidate if they wish to remain profitable amid rising research and development costs and shrinking profits, and has also been vocal about seeking a merger with another company. Shufu, meanwhile, has facilitated Geely’s purchase of Volvo, Volvo Trucks, Lotus and others, and recently invested in Daimler with the hope of one day gaining access to some of its electrified powertrain tech and other innovations.
In December of last year, FCA was purported to be in talks with Hyundai about a potential merger, but Marchionne later denied the rumors.
[Source: Bloomberg]
Sam McEachern holds a diploma in journalism from St. Clair College in Windsor, Ontario, and has been covering the automotive industry for over 5 years. He conducts reviews and writes AutoGuide's news content. He's a die-hard motorsports fan with a passion for performance cars of all sorts.
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